The US market was closed for the Martin Luther King, Jr. holiday, which saw very limited global trade overnight.
Matif canola up 1.75€ to 416.75€. The Dow Jones down -5.270 to 19885.73 , Crude Oil up 0.120c to 52.49c, AUD down to 0.74742c, CAD down to 1.317c, (AUDCAD 0.984) and the was EUR up to 1.06c (AUDEUR 0.7048).
There’s not a great deal of fundamental news to report in this morning’s Daily Market Wire. Further rainfall is forecast for Argentina which will place pressure on harvested acres of soybeans. This issue has increased in significance, given the lower supplies brought on after the recent USDA report. This helped Matif Canola to rally in spite of a stronger euro. Matif wheat futures were lower on limited volume, given the US market closure. Cold temperature are ongoing in the US which should find some support for new season winter wheat prices.
In Australia, the trade remains focused on executing their Q1 program as harvest winds up in SA and Victoria. Grower liquidity appears to be thinning, which may see some price increases going forward. The wheat market needs ongoing export demand, to reduce a burdensome carry out.
Barley and Canola demand is strong, so we need see wheat lift once their programs are completed.
The AUD appears toppy after recent gains, so a sell-off here could provide good opportunities from a pricing perspective.
On the weather front, the rainfall forecast for SA continues to push back, which will be welcome by those left harvesting wheat. The forecast there is reasonably clear for the next 4 days which enable good progress.
Source: Lachstock Consulting
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